North East unemployment rate catches up with national figure

The North East unemployment rate has caught up with the national figure.

In June, the number of over-16s classed as actively looking for work in the region was 3.6%, compared to 3.8% nationally.

But the latest figures from the Office of National Statistics (ONS) show between April and June 2023, the unemployment rate in both the North East and nationally was 4.2%.

The wider economic picture also shows the region still lagging behind in terms of the proportion of people in work and those classed as economically inactive - neither working nor actively looking for a job.

The UK’s employment rate for ages 16-64 during the quarter was 75.7%. In the North East this was lower, at 74.7%. Nationally, the economic inactivity rate for ages 16-64 was 20.9%, one percentage point lower than locally.

Callum George, Policy Adviser at the North East England Chamber of Commerce, said the picture was positive but there was more to do to get people back into the job market: "The ONS employment figures released today show that regional employment and economic inactivity rates continue to move in a positive direction. With that being said, gaps remain between the rest of the UK and the North East.

"Compared to the previous quarter, in the North East, the employment rate has improved by 1%. Economic inactivity has also improved by 1%, whilst the unemployment rate remains unchanged.

"As a Chamber, we know that recruitment difficulties are still at the heart of many businesses’ issues. Our most recent Quarterly Economic Survey we released last month shows that businesses are once again becoming more concerned about their workforce.

"This serves as a reminder that - despite the North East’s labour market being in a significantly better place than last year - employers still face real challenges driven by economic inactivity.

"The ONS reports that, nationally, significant sources of inactive people coming back into work are those who have been looking after their family or household. Despite the reduction in inactivity rates, the ONS reports that those out of work due to long-term ill health are at record highs.

"When you consider this, it emphasises the need for a compassionate and supportive approach to re-introducing people to the world of work.

"Ahead of Chancellor Hunt’s Autumn Statement, we are in the process of working with our members to gain a deeper understanding into challenges that employers are facing, including recruitment."

North East Local Enterprise Partnership Chief Executive, Helen Golightly OBE said the figures showed the North East jobs market had made' incredible progress' over the past year.

"Today’s data shows that employment in the North East region has increased by over 60,000 in the past 12 months," she said.,]

"Although still lower than England as a whole, the working age employment rate is at its highest level since comparable records started over thirty years ago. The North East unemployment and working age economic inactivity rates are at their lowest levels.

"It’s particularly pleasing that almost three-quarters of the increase in the North East’s employment in the last year has been due to increased female employment.

"But we know there are still issues to address. Employment among male workers aged 25 to 34 and 50 to 64 decreased over the year and there has been a continued increase in long term sickness.

"The improvement we've seen is testament to North East businesses, who continue to create jobs in the face of difficult economic conditions."